This paper investigates diagnostic methods and proposes modern service technologies for wood-processing equipment. The aim of this study is to ensure systematic, research-based wood-processing services and continuous, no-failure operation of facilities. We describe the working principle of a particular industrial, drum-type wood chipper and discuss the problems that occurred during operation, including potential excess engine load or construction imperfections. First experiments show that knife wear progresses even faster than previously expected. Cutting regime calculations are provided, along with a description of actual improvements and a comparison of cutting regimes before and after improvements. The intended result of this research is a monitoring unit with help of a few modifications, can be used on any drum-type wood processing equipment.